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Boston Scientific BSX has been gaining from product launches and accretive acquisitions. International expansion remains a key growth driver. The stock carries a Zacks Rank #2 (Buy).
Factors Driving BSX Shares
Boston Scientific continues to successfully expand its operations across various geographies outside the United States. In Europe, the Middle East and Africa (EMEA), Boston Scientific is successfully expanding its base banking on its diverse portfolio, new launches and commercial execution with healthy underlying market demand. In the fourth quarter, EMEA sales grew 11.6% year over year on an operational basis. During the quarter, the company launched its next-generation accurate Prime Valve in Europe. Further, an early contribution from the LUX-Dx II launch in Europe, as well as a strong FARAPULSE uptake in this region, drove growth.
Boston Scientific’s Endoscopy business within MedSurg is witnessing strong growth in endoluminal surgery and single-use imaging franchises, along with sustained growth of the AXIOS platform, where the company is reinvesting to drive expanded indications and recently received approval in Japan for AXIOS for gall bladder drainage. In endoluminal surgery, Boston Scientific is benefiting from positive reimbursement wins for its ESG weight loss procedure with the recently announced Category 1 CPT code and now IFSO, an International Bariatric Committee endorsing ESG with guideline updates.
We are also impressed with Boston Scientific’s recent acquisitions, which have added numerous products (though many are still under development) with immense potential. This, in turn, should help boost the top line in the long term. The company’s recently completed strategic buyouts include Cortex, an advanced AF mapping solution. The company also acquired Silk Road to broaden in the field of vascular medicine. Boston Scientific also completed the acquisition of Axonics in the fourth quarter of 2024.
Over the past three months, shares of BSX have gained 14.1% against the industry’s 5.7% slip. The company’s consistent efforts to expand in international markets and an array of new product launches are expected to help the stock continue its uptrend in the coming days.
Boston Scientific Corporation Price
Boston Scientific Corporation price | Boston Scientific Corporation Quote
Concerning Factors for BSX
The industry-wide trend of difficult macroeconomic conditions, characterized by geopolitical pressure and disruptions in economic activity, global supply chains, and labor markets, is creating a challenging business environment for Boston Scientific. Given sustained macroeconomic pressure, the company may struggle to keep its operating expenses in check. In the fourth quarter of 2024, the company witnessed a 27.9% rise in cost of product sold, resulting in a 138-basis point contraction in gross margin. Further, there was a 16.9% rise in selling, general and administrative expenses, resulting in a mere 6 basis points expansion in operating margin.